The upward movement of the Indian stock markets following Nirmala Sitharaman’s corporate tax cuts on Friday, 20th September finally slowed down to a trickle on Tuesday, 24th September. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) crashed to end the day’s trading.
The BSE end-of-day closing figure was 39,097.14. The NSE closed at 11,580.20, a fall of about 0.1 per cent. The Indian stock markets’ dip is a contrast to the bullish trends shown by stock markets across the world. For the latter stock markets, the prospect of the US-China bilateral trade talks proved to be the catalyst for the surge.
Despite the downward trend, the information technology (IT) industries in the NSE showed signs of positivity with the sector gaining as much as two per cent at the day’s closing. Individual IT companies’ break-up showed Infosys’ shares gaining around 3.88 per cent and Tata Consultancy Services’ (TCS) shares gaining around 1.56 per cent.
The biggest gainer of the day was Mukesh Ambani’s Reliance Industries Limited (RIL). The company shares moved favourably and ended the day with an increase of over three per cent. The biggest losers of the day were the steel company JSW Steel whose share value slumped by around 4.19 per cent, and the State Bank of India whose share value fell by slightly over four per cent (4.06 per cent).
The Indian Gross Domestic Product is hovering around the five-per-cent mark. This has become a cause of concern for the country’s economists and market analysts. In an attempt to stem this freefall, on Friday, Sitharaman, the nation’s finance minister had lowered the corporate tax slab (for Indian companies) to around 25 per cent from 30 per cent as had been laid down by her during her budget presentation earlier in the year.